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U.K. Mulls Binding Say-On-Pay Votes

Reese Darragh | January 25, 2012

Similar to say-on-pay votes in the United States, votes on executive compensation in Britain are advisory votes only, meaning that boards there are free to ignore them. But that could be changing in the near future.

Earlier this week, Vice Cable, U.K. business secretary, told Parliament that the Cameron administration was considering a proposal to make say-on-pay votes binding and to propose other measures to rein in compensation "excesses," including exit packages in excess of one year's salary.

"The evidence is clear that business and investors recognize there is a disconnect between top pay and company performance and that something must be done," Cable told lawmakers in the House of Commons. "We cannot accept top pay rising at five times average workers' pay as we did last year."

The British Government is also considering proposals that would...

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